Mercedes-Benz to decide on price increase by next week

Luxury car major Mercedes-Benz India may take a decision next week on increasing prices of its models to offset the rise in input costs following the rupee's depreciation, a top company official said today.

The matter has been considered over the past few months and a decision will probably be announced by next week, Eberhard H Kern, Managing Director and CEO of Mercedes-Benz India, told reporters here. He refused to divulge the quantum of increase.

Earlier this month, the BMW group said it will increase prices across models, including the Mini, by up to 5 percent amid higher import costs due to the declining rupee. German luxury carmaker Audi had said on July 10 it would hike prices in India by up to 4 percent.

Mercedes-Benz India plans to alter its strategy of purchasing and sourcing in India, considering the local currency's depreciation, said Kern, who was here for the launch of the E 63 AMG 5.5L and the opening of a showroom.

The company has increased its investment to Rs 850 crore in its plant in Chakan, Pune, and plans to double capacity from the present 10,000 units by the year end.

On the launch of the compact SUV, Kern said the GLA would be showcased at the Frankfurt Motor Show this year and will be brought to India next year.